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Raw Materials Gain as Bernanke Supports Stimulus

Commodities climbed today after Federal Reserve Chairman Ben Bernanke supported the case for accommodative policy. He explained that the unemployment level in the United States remained above the norm and policy makers should continue stimulating economy. Some analysts were surprised by the reaction of market participants as Bernanke didn’t say anything new. Nevertheless, markets reacted strongly and positively to the Chairman’s comments.

Earlier, raw materials were under a downside pressure on fears that the debt crisis may threaten Europe again. The concerns subsided as Germany signaled that it may support the idea of running both the temporary and the permanent bailout funds simultaneously.

May futures for delivery of crude oil rebounded to $107.03 per barrel on NYMEX after falling to $106.19. Brent crude climbed from $125.04 to $125.70 per barrel as of 21:47 GMT on ICE today. Gold went higher from $1,663.00 to $1,690.90 per ounce on COMEX today and touched $1,693.40 — the highest settlement since March 13. Copper climbed from $3.8250 to $3.8985 per pound in New York.
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